Ownership and Control:
CEXs: Managed by a central authority.
DEXs: Operated by smart contracts and blockchain protocols, no central authority.
Custodianship of Assets:
CEXs: Custodial – the exchange holds your funds.
DEXs: Non-custodial – you retain full control of your assets.
Trading Fees:
CEXs: Higher, due to additional services.
DEXs: Lower, generally.
Liquidity:
CEXs: High liquidity and fast trade execution.
DEXs: Lower liquidity, especially for large trades.
Security:
CEXs: Vulnerable to hacking but often have insurance and customer support.
DEXs: Safer from large-scale hacks but can have smart contract vulnerabilities.
Convenience:
CEXs: User-friendly with fiat-to-crypto options.
DEXs: Requires a crypto wallet and basic blockchain knowledge.
Privacy:
CEXs: Limited privacy, often requires KYC.
DEXs: High privacy, no KYC needed.
Fiat Compatibility:
CEXs: Easy to convert fiat to crypto.
DEXs: No direct fiat-to-crypto options.
Customer Support
CEXs: Provides customer support for issues like account recovery.
DEXs: Lacks customer support services.
Variety of Cryptocurrencies
CEXs: Wider range of supported cryptocurrencies.
DEXs: Often supports a broader range, including less mainstream ones.
User Experience
CEXs: Designed for maximum profitability, can have conflicts of interest.
DEXs: Clunkier and slower, requires more experience to use.
Conclusion
CEXs: Ideal for beginners and those who value convenience and support.
DEXs: Suitable for experienced users who prioritize privacy, security, and control over assets.